Zacks Research Predicts Higher Earnings for MGIC Investment

Key Points

• Zacks Research raised its Q3 2027 EPS estimate for MGIC Investment to $0.83 from $0.82, and also projected $0.83 EPS for Q1 2028 and $3.28 EPS for FY2028.
• MGIC Investment recently beat quarterly earnings expectations, reporting $0.76 EPS versus the $0.73 consensus, though revenue of $297.08 million came in slightly below estimates and fell 3% year over year.
• The company announced a $750 million stock buyback and continues to pay a quarterly dividend of $0.15 per share, equal to a 2.2% annualized yield.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Investment analysts at Zacks Research raised their Q3 2027 EPS estimates for MGIC Investment in a report issued on Thursday, June 25th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings of $0.83 per share for the quarter, up from their previous forecast of $0.82. The consensus estimate for MGIC Investment's current full-year earnings is $3.05 per share. Zacks Research also issued estimates for MGIC Investment's Q1 2028 earnings at $0.83 EPS and FY2028 earnings at $3.28 EPS.

Several other analysts have also commented on MTG. Barclays lowered their price objective on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. Royal Bank Of Canada assumed coverage on MGIC Investment in a report on Friday, May 22nd. They set a "sector perform" rating and a $28.00 target price on the stock. Keefe, Bruyette & Woods increased their target price on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. Weiss Ratings restated a "buy (b)" rating on shares of MGIC Investment in a research note on Monday, June 15th. Finally, UBS Group dropped their price target on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, MGIC Investment currently has a consensus rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Trading Up 0.1%

Shares of MTG opened at $27.88 on Monday. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $29.97. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13. The firm's 50-day moving average price is $26.50 and its 200-day moving average price is $27.00. The firm has a market capitalization of $5.90 billion, a price-to-earnings ratio of 8.85, a PEG ratio of 1.92 and a beta of 0.68.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 EPS for the quarter, topping the consensus estimate of $0.73 by $0.03. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The business had revenue of $297.08 million during the quarter, compared to analyst estimates of $303.12 million. During the same period in the prior year, the business earned $0.75 EPS. The company's revenue for the quarter was down 3.0% on a year-over-year basis.

MGIC Investment declared that its Board of Directors has authorized a stock repurchase plan on Thursday, April 23rd that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to repurchase up to 12.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

MGIC Investment Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Wednesday, May 6th were paid a dividend of $0.15 per share. The ex-dividend date of this dividend was Wednesday, May 6th. This represents a $0.60 annualized dividend and a yield of 2.2%. MGIC Investment's payout ratio is presently 19.05%.

Insider Buying and Selling

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $25.38, for a total value of $761,400.00. Following the sale, the chief operating officer owned 560,951 shares in the company, valued at approximately $14,236,936.38. This represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the company's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.55, for a total transaction of $534,940.35. Following the completion of the sale, the executive vice president owned 169,620 shares in the company, valued at approximately $4,333,791. This trade represents a 10.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 201,070 shares of company stock valued at $5,270,740 over the last quarter. Corporate insiders own 1.34% of the company's stock.

Institutional Trading of MGIC Investment

A number of hedge funds have recently made changes to their positions in MTG. Norges Bank bought a new position in MGIC Investment during the 4th quarter valued at approximately $96,248,000. AQR Capital Management LLC boosted its holdings in MGIC Investment by 92.4% in the second quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider's stock worth $176,313,000 after acquiring an additional 3,041,446 shares in the last quarter. Arbejdsmarkedets Tillaegspension bought a new stake in MGIC Investment in the fourth quarter worth $24,456,000. Jane Street Group LLC grew its stake in shares of MGIC Investment by 71.2% in the fourth quarter. Jane Street Group LLC now owns 1,739,877 shares of the insurance provider's stock worth $50,839,000 after acquiring an additional 723,480 shares during the last quarter. Finally, Caisse de depot et placement du Quebec grew its stake in shares of MGIC Investment by 20.4% in the third quarter. Caisse de depot et placement du Quebec now owns 3,943,965 shares of the insurance provider's stock worth $111,890,000 after acquiring an additional 667,876 shares during the last quarter. 95.58% of the stock is owned by institutional investors.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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